shaley
Platinum Member
Anyone have any idea what the dealer margin is on new tractors? I asked my dealer but he wouldn't tell me.
Dealer Dealer Margins
- Thread starter shaley
- Start date
MadReferee
Elite Member, Rest in Peace
- Joined
- Apr 28, 2003
- Messages
- 3,741
- Location
- New Hampshire
- Tractor
- Kubota B2710, IH TD6-62 dozer with Drott 4n1 bucket loader
It depends on a lot of factors including volume sales, overhead, etc, etc, and varies from dealer to dealer. I doubt if any individual dealer will tell you his profit margin.
If you are looking to get a deal then you should be looking at the best pricing or how much of a discout from MSRP you are getting.
If you are looking to get a deal then you should be looking at the best pricing or how much of a discout from MSRP you are getting.
MessickFarmEqu
Super Member
MadReferee said:
I think I've said this a thousand times, but this absolutly is not the case. The % off list varies by huge margins. There are some models where dealer cost after freight and setup is literaly within a few % of MSRP, there are others where we can sell at a good 20% discount and still pay the bills. Anything to do with MSRP is a waste of time. Price a few tractors localy, and go with the best offer.... simple as that.
Kubotasrking
Gold Member
shaley said:
I think Messick has it right. Scale has a lot to do w/ price no matter the business. In addition, supply/demand play a key role. In my neck of the woods, we pay an incremental % vs. those in OK & TX (not a statistical sample...just from watching the posts here on TBN...) I went so far as to purchase my first tractor (Kubota B7800) in Oklahoma, proceed to drive 2K miles, pick it up, and sell it 2 years later for more than I bought it for...albeit exlcuding my time and the price of diesel which was cheap then.
My recent purchase was awesome in our local market driven largely by the financing deals being offered on new equipment. I guess the moral to the story is that you can shop a long time for the perceived "good deal", but when you come across a fair price for a great machine, you and your dealer will win.
Best of luck!
CurlyDave
Elite Member
Price a few tractors localy, and go with the best offer.... simple as that.
I have to agree.
The primary two things to me are:
1. Can I afford it?
2. Will the dealer give good service.
I would rather spend a few $ more to get a good dealer, and know that he will be there when I need him.
That is why I have a JD 110. The JD dealer was reliable, highly recommended, and took the time to make sure I understood exactly what I wanted.
The particular Kubota dealer in my area, had no clue what I needed, didn't ask the right questions to find out, and was willing to sell me an L39 with a list of options that would have been very unsatisfactory.
I have never been happier than to spend the extra 5-10% to get the machine from a dealer I trust. And, he has made up a lot of that extra cost.
Whenever I need an implement, I tell him, and I get the first right of refusal on the next used one that comes in. This has saved me plenty. And, he stands behind the used ones.
I have to agree.
The primary two things to me are:
1. Can I afford it?
2. Will the dealer give good service.
I would rather spend a few $ more to get a good dealer, and know that he will be there when I need him.
That is why I have a JD 110. The JD dealer was reliable, highly recommended, and took the time to make sure I understood exactly what I wanted.
The particular Kubota dealer in my area, had no clue what I needed, didn't ask the right questions to find out, and was willing to sell me an L39 with a list of options that would have been very unsatisfactory.
I have never been happier than to spend the extra 5-10% to get the machine from a dealer I trust. And, he has made up a lot of that extra cost.
Whenever I need an implement, I tell him, and I get the first right of refusal on the next used one that comes in. This has saved me plenty. And, he stands behind the used ones.
Kubotasrking
Gold Member
How about his manure spreader?
(From a post in attachments..)
CurlyDave
Elite Member
How about his manure spreader?
DW and I were both born & raised in the suburbs. We are easing into this country living/redneck-in-training thing.
So far our pledge of "no large pooping animals" has been kept.
- - - -
I read that thread, and I have to admit that it may be a few years before I am ready to stand by a chipper/shredder while feeding manure into it.
DW and I were both born & raised in the suburbs. We are easing into this country living/redneck-in-training thing.
So far our pledge of "no large pooping animals" has been kept.
- - - -
I read that thread, and I have to admit that it may be a few years before I am ready to stand by a chipper/shredder while feeding manure into it.
You have some good advice above. My 2 cents is to put together an official RFQ (Request For Quote) that has the tractor configuration and options on it exactly how you want. Then fax or email it out to your surrounding NH dealers and see what responses you get. We just went through this process again last week and it's amazing what you get back! We submitted our RFQ to 7 or 8 of our surrounding NH dealers with our trade-in specs and all of the specs/options on our new tractor. This is assuming you know what you want! You get dealers that don't respond to your RFQ until days later... you get dealers that FAX the info back sloppily written with no phone call to verify info...and you get dealers who call you immediately and want to review your RFQ and ask questions. So by doing this...you are not only seeing how good of a deal you can get, but you are also seeing how good the salesperson/dealership is and if they take an interest in really earning your business. The important thing here is to narrow your search down to 2 or 3 dealers and then go visit them and check out their facility and see if you have a good rapport with the salesperson, etc. Of course, you need to kick the tires and drive a few tractors at each dealer..but that is all to educate yourself further and your TBN friends! By the end of the day, you should have a good feeling for what is a good deal and also which dealership you would like to build a relationship with.
You get dealers that don't respond to your RFQ until days later... you get dealers that FAX the info back sloppily written with no phone call to verify info...and you get dealers who call you immediately and want to review your RFQ and ask questions. So by doing this...you are not only seeing how good of a deal you can get, but you are also seeing how good the salesperson/dealership is and if they take an interest in really earning your business. The important thing here is to narrow your search down to 2 or 3 dealers and then go visit them and check out their facility and see if you have a good rapport with the salesperson, etc. Of course, you need to kick the tires and drive a few tractors at each dealer..but that is all to educate yourself further and your TBN friends! By the end of the day, you should have a good feeling for what is a good deal and also which dealership you would like to build a relationship with.The reason for the original question was mainly curiosity. My dealer also runs an automotive service and parts business at the same location/building. It looks like the auto service/parts is what pays the bills and keeps his people busy. Great dealer and good tractor parts dept. I just wonder if he makes any money. Do most tractor dealers just sell/service tractors and farm machinery? Why not - Buy a tractor and get free aluminun siding.
daTeacha
Veteran Member
Elaborating a bit on what the dealers have said, keep in mind that everything sold in the store does not have the same % profitability. If an item sits in the parts department without being sold for a long time, it's costing the dealer money in inventory interest. When you buy something else and he makes a few bucks on it, it enables him to keep those slow moving items in stock for when you need it "yesterday".
Work with a long established dealer near you. He didn't stay in business for all those years by overcharging his customers, nor did his customers drive him out of business by spending their money on the internet. He's there because he has a good working relationship with enough people -- in sales, parts, and service -- to support the size operation he runs.
Work with a long established dealer near you. He didn't stay in business for all those years by overcharging his customers, nor did his customers drive him out of business by spending their money on the internet. He's there because he has a good working relationship with enough people -- in sales, parts, and service -- to support the size operation he runs.